Two announcements from [t]LOOP[/t] today:
InPlay: 8:31 AM LoopNet reaffirms Q1 financial guidance; sees EPS of $0.11-0.12 vs $0.09 consensus (LOOP) 6.11 : Co reaffirmed existing guidance for revenue, adjusted EBITDA, and non-GAAP net income, for the quarter ending March 31, 2009. As outlined on February 11, 2009, the co expects rev to be in the range of $19.7 to $20.0 mln vs $19.6 consensus, adjusted EBITDA to be in the range of $7.5 to $7.8 mln, and non-GAAP EPS to be in the range of $0.11 to $0.12 per diluted share vs $0.09 consensus, assuming an effective tax rate of approximately 41% to 42%.
LoopNet Announces Private Equity Investment of $50 Million
Appoints James T. Farrell, Managing Partner of Calera Capital, to Board of Directors
Monday March 30, 2009, 8:30 am EDT
SAN FRANCISCO--(BUSINESS WIRE)--LoopNet, Inc. (NASDAQ:LOOP - News), the leading online marketplace for commercial real estate and businesses for sale in the United States, today announced that Calera Capital, in conjunction with previous and existing investors, Trinity Ventures and Rustic Canyon Partners, have entered into an agreement to purchase $50 million of LoopNet convertible preferred stock.
This financing will provide LoopNet with additional resources to pursue and accelerate our growth strategy in this unprecedented market environment,” said Richard Boyle, Chairman and CEO of LoopNet. “We are very pleased with the level of support, and confidence in our vision and business, that this investment demonstrates by our new and previous investors.”
Under terms of the investment agreement, Calera Capital, Trinity Ventures, and Rustic Canyon Partners will collectively purchase $50 million of convertible preferred stock. The preferred stock is convertible into shares of LoopNet's common stock at $6.72 per share, or an approximate 10 percent premium to the closing price per share of the Company’s common stock on March, 27, 2009. If converted, the investment would represent approximately 17.8 percent of the Company's shares outstanding. The preferred stock does not pay or accrue any dividends. LoopNet may redeem all of the preferred stock if the average closing price per share of the common stock during any 20 consecutive trading days is at least $16.80, subject to the holders’ right to convert into common stock. The holders of the preferred stock will have an optional redemption right at the sixth year anniversary of the issuance.
In conjunction with this investment, James T. Farrell, Managing Partner of Calera Capital, will join LoopNet’s Board of Directors.
“We have been extremely impressed with the quality, depth, and execution capabilities of LoopNet’s management team,” said James Farrell, Managing Partner of Calera Capital, “and see compelling opportunities for the Company to build on its leadership position.”
According to Richard Boyle, Chairman and CEO of LoopNet, “We are thrilled to welcome Jim to our Board of Directors and look forward to reaping the benefits of his many years of experience in the real estate and financial services industries.”
Neither the sale or the issuance of the convertible preferred stock or the shares of common stock underlying the convertible preferred stock in this transaction have been registered under the Securities Act of 1933, as amended, or applicable state securities laws and will not be offered, sold or transferred in the United States absent registration or an exemption from registration. LoopNet has agreed to file a resale registration statement on Form S-3 for purposes of registering for resale the shares of common stock underlying the convertible preferred stock upon demand from the holders.
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